What is the escrow period in a Real Estate transaction?
In California the escrow period is defined as the deposit of funds when a home is sold.
Over the last few months the escrow period has changes drastically in California and many lenders have been able to speed up how quickly buyers are able to get the funds for the homes they purchase.
The escrow period has traditionally lasted for 30 days but some mortgage lenders in Orange County and across the United States have been able to speed up the escrow period on their loans so they close in as little as 10, 14 and 21 days.
Why Does A Quick Escrow Period Help Buyers?
A quick escrow period helps buyers because this gives them the ability to close on a home quicker than other buyers who may want to purchase the same home as they do.
Tip – If you have to travel during the escrow period you should try to avoid it if possible because it may take you longer to receive the loan documents, sign and send those docs back into the hands of your lender.
Good For Sellers Too
Quicker escrow periods also helps sellers too since a fast escrow will enable the homeowner to have quicker access to the funds when their homes close and use that money for a down payment on other homes that they plan on buying.
If you plan on buying a home in Orange County in the coming months it makes sense to interview more than one mortgage lender and find out the length of their escrow period since a quicker escrow period could help to get you into a home sooner than you imagined.
For more information on what to expect during the escrow period or to view homes for sale across Orange County contact Fred Sed & Associates today by calling us at (949) 272-0125.